Q: Allstate insurance has been overcharging my account for months. Sometimes 2-3/per month. What are my rights?
This is for car insurance. Bank statements and the Allstate app for customers show that the account has been over charged. They are threatening to cancel the policy if additional payment is not made immediately.
A:
With any billing question it may be helpful to first review in detail the fine print of the insurance contract and/or ask the person/company imposing the charge to show you where in the contract gives the right to impose such a charge. For example, a contract might impose an "installment fee" if a premium is paid monthly instead of say once every 6 months.
If there is no contractual basis for a charge, one might contact the Maryland Insurance Administration.
Claims less than $5,000 can be filed in District Court as a "small claim" but there is always a cost to sue and generally it is a good idea to stop and consider whether it makes any sense at all to sue for minor amounts. Consumers usually have the right to switch insurance carriers at any time, so one can always shop around if dissatisfied for any reason.
While I hope this general information is helpful it is not legal advice about any specific situation.
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